Correlation Between Industrial Bank and PetroChina
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By analyzing existing cross correlation between Industrial Bank Co and PetroChina Co Ltd, you can compare the effects of market volatilities on Industrial Bank and PetroChina and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Industrial Bank with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and PetroChina.
Diversification Opportunities for Industrial Bank and PetroChina
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Industrial and PetroChina is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Industrial Bank is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Industrial Bank Co are associated (or correlated) with PetroChina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PetroChina has no effect on the direction of Industrial Bank i.e., Industrial Bank and PetroChina go up and down completely randomly.
Pair Corralation between Industrial Bank and PetroChina
Assuming the 90 days trading horizon Industrial Bank Co is expected to under-perform the PetroChina. In addition to that, Industrial Bank is 1.23 times more volatile than PetroChina Co Ltd. It trades about -0.18 of its total potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.17 per unit of volatility. If you would invest 837.00 in PetroChina Co Ltd on August 29, 2024 and sell it today you would lose (35.00) from holding PetroChina Co Ltd or give up 4.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial Bank Co vs. PetroChina Co Ltd
Performance |
| Timeline |
| Industrial Bank |
| PetroChina |
Industrial Bank and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and PetroChina
The main advantage of trading using opposite Industrial Bank and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank position performs unexpectedly, PetroChina can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PetroChina will offset losses from the drop in PetroChina's long position.| Industrial Bank vs. Bomin Electronics Co | Industrial Bank vs. Zhangjiagang Freetrade Science | Industrial Bank vs. Nantong Haixing Electronics | Industrial Bank vs. TongFu Microelectronics Co |
| PetroChina vs. Guilin Seamild Foods | PetroChina vs. Great Sun Foods Co | PetroChina vs. Jiahe Foods Industry | PetroChina vs. Lander Sports Development |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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